SAP MM/WM Configuration Pack Enterprise Structure Published by Team of SAP Consultants at SAPTOPJOBS Visit us at www.sap-topjobs.com
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INDEX Over-view:-................................................. ....................................................... ................................................................. .................. ........ 4 Getting into the Configuration area of SAP.................................................... ....................................................................... ...................13 13 Enterprise structure ................................................................................. ............... ...................... ........... .... 16 Define valuation level...................................................... ......................................................................................... ................................... ....... ........... .... 18 Define Plant ........................................................ ........................................................................................... ................................... ....... .............. ............... .......... .. 20 Maintain plant details and Factory calendar in Plant ............................................. ........ ........23 23 Define Location .................................................. ................................... ....... .............. ............... .......... .. 25 Maintain Storage Location....................................................... ........................................................................................... .................................... ..27 27 Maintain Purchase organization ....................................................................................31 31 Assign Plant to company ...................................................... ......................................................................... .......................... ............... ............... ....... 33 Assign purchase organization to the company code......................................... ........ ............. ..... 34 Assign purchase organization to plant ..................... ...................................... ....... ............... ........ 35 Material Master .................................................................................................................36 36 Assign field to field selection groups ........................................................ ............................................................................. .....................37 37 Define plant specific field and screen selection................................................. ............41 41 Define material type...................................................... .................................................................................................... .............................................. ...42 42 Define Number range for each material type ..................................................... ................................................................. ............46 46 Define industry sector ...................................................................................................48 48 Maintain user specific settings................................................. .................................. ....49 49 Set material block for goods movement................................................ ....... .............. ............... .......... .. 52 Define storage location MRP per plant .................................................... .......................................................................... ......................54 54
It gives me a great thrill to present before you the SAP MM/WM MM/WM confi configu gurat ratio ion n pack pack.. Al Alll this this woul would d not have have been been possible without your best wishes . We thank you from the bottom bottom of our heart for giving us a chance to serve you . For imposing this faith in us we want to ensure that we provide you with the most competent, professional and step by step configuration in SAP MM/WM which will help you reduce your learning curve significantly and help you execute projects with more confidence and style. We have tried our best to structure it in a manner which is conducive to focused learning and we would love to hear back from you and we will do our very best to ensure that you achieve all your goals in SAP. Happy reading and wish you the very best in your SAP career. If any of you dear readers would like to receive a special gift from me, send me your comments on my book: MY EMAIL ADDRESS IS:
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Over-view:MM Modul odule e is the one one of the most ost impo import rtan antt logis ogisti tics cs modu module les s in SA SAP. P. MM mod modul ule e cove covers rs the the fol follo lowi wing ng bas basic ic functions •
Planning
•
Procurement
•
Inventory Management
Planning: The following are the two types of planning in MM module. • •
Consumption Based Planning Material Requirement Planning
Consumption Based Planning is based on past consumption pattern. In this type of planning requirement is triggered by the the stock tock leve levell and and NOT NOT by any any pl pla anned nned indep ndepen end dent ent requirement or dependant requirements. Mate Materi rial al Requ Requir irem emen entt Plan Planni ning ng is the the deta detail iled ed pl plan anni ning ng based on requirements and stock levels. Procurement: Procurement activities involves everything from the stage of identifying vendors up to making payments to the respective vendor.
The following are the important procurement functions: •
Identify the vendor
•
Negotiate the terms and conditions
•
Release the purchase order
•
Follow up for supplies
•
Ensure right quantity and quality materials are received at right time
•
Ensure payment to the vendor at right time as per the agreement terms.
Procurement Proposals: As a result of planning, procurement proposals are created for the net requirement quantities either in terms of planned order or as purchase requisitions. If it is a planned ned order, it has to be conv onvert erted to the purchase requisition. This is an important function between planner and the procurement person. If purchase requisitions are directly generated, it has to be converted to purchase order. Purchasing: Purchasing is the process of releasing the document to the identified vendor authorizing him to supply the materials at a negotiated price. Three important purchasing methods are
a. Purchase Order
b. Contracts c. Scheduling Agreement a. Purchase Order: - It is the process of issuing PO to the vendor requesting him to supply according to the requirements as a one time or as per the delivery schedule. b. Contracts: - Contracts of quantity based or rate based can be issued to the vendor authorizing him to supply till reaching certain quantities or certain value of supply is reached. Every contract will have a release order. c. Scheduling Agreement: Scheduling agreement is similar to PO. It will specify the quantity, rate but the schedule of delivery will be informed through the delivery schedule to the vendor. Each scheduling agreement will have a delivery schedule. If scheduling agreement is available with a vendor, MRP can automatically create the delivery schedule instead of PR or Planned order during MRP run.
Inventory Management: Entire stocks and material movements are dealt in inventory management. Each material movement is associated with a movement type number. Movement type is responsible to determine the right GL account for FI postings. When performing the inventory management transactions system performs the following actions instantly • • • •
Material document is generated FI document is generated Controlling document is generated Inventory is adjusted
Inventory Management is tightly integrated with MRP and MRP data.
Master Data in MM: As in every module, Master data plays a major role in MM module as well. Following are the important master data in MM module. •
Material Master (across all modules)
•
Vendor Master
•
Purchase Info record
•
Quota arrangement (MM and PP modules)
•
Source List
Integration of MM with other Modules: Materials Management and its component inventory management is directly linked with MRP, purchasing and invoicing for vendor supplies. MRP takes the inventory into account and also the expected receipt and issues during MRP run which is the vital data for successful MRP. MM with PP •
Staging of components for production order
•
Receipt of finished products into the warehouse
MM with QM •
A movement type determines whether the material is subject to QM or not.
•
Goods posted to QM stock if it is subjected to QM
MM with SD •
•
•
Availability check can be carried out on creating sales order As soon as the delivery against the sales order is created, that quantity is marked for delivery and deducted from stock when performing post goods issue (PGI) for delivery. Special sales order stocks can be maintained.
MM with PM Goods movements are performed with respect to Equipment BOM • Maintenance order • With serial number management, serial number can be • entered with every serial number MM with FI •
When posting the material movements, GL accounts are determined through movement type and valuation class information.
•
Entire accounting entries are posted instantaneously
OK friends, having understood the over view of MM module; let us try to look at what is there in store with this MM pack for you.
For ease of learning and better understanding of MM module, it is divided in to five topics as mentioned below. •
Enterprise structure
•
Planning
•
Master Data and PR
•
Purchasing
•
Inventory Management
To the each one of the above topic, complete configuration, user manual and power point presentation is provided. Configuration - Enterprise Structure: Define Plant Define Storage Location Assign Plant to a company Define Purchase Organization Purchase organization assignment Defining material master field selection Material Master Plant specific field selection Define Material Type Define number range for material type Define Industry sector for material master. Configuration - Planning:Complete configuration of Planning Consumption based planning
Material
Configuration - Master Data and PR: Define system message attributes Defining purchase value key
Requirement
Define payment terms Define Inco terms Define Account Group (Field selection for vendor master) Define number range for account group Define purchasing groups Define copying rules Define Document types Configure Release strategy for PR Configuration – Purchasing: Define Document type Define Number Range Define tolerance limit for price variance Release procedure for Purchase orders Configure stock transport orders Define Access Sequence Define Condition Type Define calculation schema Define Schema determination Account Determination Configuration – Inventory Management: Define Plant Parameters Define Field selection for goods movements Movement type setting Configure automatic storage location creation Define screen layout Define availability check for movement types Configure negative stock Define output determination Configure stock determination Configure split valuation
Getting into the Configuration area of SAP BACKGROUND
There are two types of access to the user in SAP. 1. Easy access - used to access daily transactions 2. Project view or IMG – used to access configuration.
for
SAP Easy access is to perform the master data maintenance and perform transaction. SAP configuration is to maintain the backend settings according to the business requirements. Access to each transaction is controlled by authorization. Follow the steps explained here to get into the configuration area in SAP.
INSTRUCTIONS 1. Type SPRO in the SAP main screen dialog box,
2.
Click
3.
Click on
4.
Click appropriate node
to look at more details.
When the menu path is mentioned as “IMG”, follow the above steps.
Enterprise structure Enter price structure describes the entire organization details. Organizational details are broadly divided into the two areas like financial area and logistics area. Financial area deals with
company code
controlling area
Currency and more.
Logistics area deals with
Plant
Storage location
Sales organization
Sales Distribution channel
Sales Division etc.
Or
Define valuation level BACKGROUND This configuration setting enables to define at which level the stock are to be valuated in SAP. Stocks can be valuated at following two levels in SAP.
Plant level
Company code level
It is recommended to keep at plant level. This is a client level setting.
INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure Definition → Logistics - General → Define valuation level 1.
Click
→
2.
Select the radio button
3.
Click Save
Define Plant BACKGROUND This configuration setting enables to define the plant. Each manufacturing facility or branch of a company is defined as a plant in SAP. Plant is assigned to the company code. Storage locations are created under each plant. If the valuation level is the plant, the stocks are valuated at plant level. Note: - It is common practice to copy plan from the existing defined plant. It will be defined by the FI.
INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Definition → Logistics - General → Define copy, delete, check plant 1.
Click
2.
Click
3.
Click
4.
Click
5. Enter from plant as plant
0001 to copy from SAP defined
6. Enter To Plant – E.g. IND6 7.
Click
8.
Click
to return to main menu.
Note: - Definition of plant and assignment of plant to the company codes along with relevant GL accounts is done by the FI team. However the creation of plant is demonstrated.
Maintain plant details and Factory calendar in Plant BACKGROUND When copying the plant, the entire details will be copied from the source plant. Address of the plant and other details attached to the plant can be changed.
INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Definition → Logistics - General → Define copy, delete, check plant 1.
Double click
2. Select plant IND6 by clicking the grey box in the left side 3.
Click
4.
Click
5. Maintain the entire address, contact details of the plant. 6. Factory calendar must be attached to the plant Below screen shows the details of plant settings.
Define Location BACKGROUND This configuration setting enables to define the location. Location indicates where the materials are stored inside the plant.
INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure Definition → Logistics - General → Define Location 1.
Click
2.
Click
3. Update required and optional fields: Field Name Description Plant Name of the plant Location Location identification Name Description of the location 4.
→
Value e.g. IND6 E.g. PROD Production location
Click
Note: - Maintain the address of the subsequent screen.
location
in the
5. Enter title as Company 6. Enter country 7.
Click
8.
Click
.
Maintain Storage Location BACKGROUND This configuration setting enables to define the physical storage location. This will indicate where the stocks are stored physically inside the plant. Each item must have storage location. One material can be stored in many storage locations. Storage locations can be assigned to the warehouse through warehouse management.
INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Definition → Materials Management → Maintain storage location
Click
Enter the plant where the storage location is to be created. E.g. IND6 Click
Click Enter Storage location Enter description of the storage location Click
Select the storage location Double Click Enter the sequential number 1 Click
Select the sequence number Click
Maintain the address. Click Click Repeat the above to maintain the address for all storage locations.
Maintain Purchase organization BACKGROUND This configuration setting enables to define the purchase organization. Purchase organization is the part of the enterprise structure from MM point of view. It represents the responsibilities to
Procure materials and services
Negotiation with vendor
Purchase organization is assigned to the company codes and plants. Following are the possibilities of assignments.
One purchase organization to many company codes
One purchase organization to one company code
One purchase organization to one plant
Note: - It must be assigned to plant.
INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Definition → Materials Management → Maintain purchase organization 1.
Click
2.
click
3. Update the following fields
Field Name Purch.organization Purch.org.descr.
4.
Click
.
Description Key identifying the purchase organization. E.g. IND6 Description of the purchase organization. E.g. For plant IND6
Assign Plant to company BACKGROUND This configuration setting enables to assign plant to the company code.
INSTRUCTIONS Follow the Menu Path: IMG Assignment → Logistics – General code 1.
Enterprise structure → → Assign plant to company →
Click
2. Select the desired company code by clicking the cursor on it. 3.
Click
4. Select the plant from the display 5.
Click
6.
Click
.
Assign purchase organization to the company code BACKGROUND This configuration setting enables to assign the purchase organization to a company code.
INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Assignment → Materials Management → Assign purchase organization to company code 1.
Click
2. Select the desired company code by clicking the cursor on it. 3.
Click
4. Select the purchase organization 5.
Click
6.
Click
Assign purchase organization to plant BACKGROUND This configuration setting enables to assign the purchase organization to a plant.
INSTRUCTIONS Follow the Menu Path: IMG → Enterprise structure → Assignment → Materials Management → Assign purchase organization to plant 1.
Click
2. Select the desired plant by clicking the cursor on it. 3.
Click
4. Select the purchase organization 5.
Click
6.
Click
All right guys, not much about MM organization structure. Now we shall look into material master related to configurations.
Material Master Material master contains all information about a material. All the information have to be maintained by the different end users. Example:
Physical, sales and storage related details of a material is maintained by the logistics team
Finance related information is maintained by the finance team
Quality related information is maintained by the QM team
Ok, now let’s go to the configuration details of material master.
Assign field to field selection groups BACKGROUND This configuration setting enables to define the field in the material master as mandatory or optional or to hide. Let’s try to make the purchasing value key as mandatory entry for plant IND6.
INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → Field Selection → Assign fields to field selection groups 1.
Click
2.
Click
in purchasing value key row
3. Create new field ref by copying from the standard SAP entry. E.g. IND6 as field reference. 4.
Click
5. Select the field selection as required entry
6.
Click
Define plant specific field and screen selection
BACKGROUND When there are more than one Bill Of Material, system will select the first alternate by default. It can be configured in such a way that system takes the right alternate for a given period.
INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → Field Selection → Define plant specific field selection and plant specific screen selection 1.
Click
2. Maintain field reference as IND6 for plant IND6.
3.
Click Save
.
Define material type BACKGROUND Similar to the above alternate defining in production area, for other areas like Inventory, MRP, Costing, Sales and Distribution and Plant Maintenance can be maintained. Only the menu path is given here and the rest of the settings are similar to above 1.1.8.
INSTRUCTIONS Follow the Menu Path: IMG Material master → Basic settings Attributes of Material Types 1.
Logistics – General → → Material types → Define →
Click
2. Select ROH by clicking the grey box in the left 3.
Click
to copy from ROH to the new material type
4. Type the new material type as YROH 5. Maintain the field reference as FERT 6. Select sales view
Note: - Standard settings are sufficient. Field name Field reference X plant material status
Item category group
Description Field references are taken from this material type. Cross plant material status to restrict the usage of material in all the plants. Default item category group to determine the item category for the material type. Tick in this check box will make the initial status of the batch as restricted.
Tick in this check box will not check with the external number range when creating the material master. Price control which will appear in the material master. However it can be changed in the material master. Indicates that the Quantity update in specific valuation area. Indicates that the value update in specific valuation area. Double click
Select the check box only in the relevant valuation area. E.g. IND6, IND7 and IND9
7.
Click
8.
Click
9.
Click Save
Effect of this configuration setting with initial status check box ticked. When the new batch is created, the initial status of that batch will be restricted.
Note: Considering the restricted batch for MRP will be controlled by the IMG setting for MRP. The batch status can be changed to unrestricted-use only through manually or through the QI Usage decision.
Define Number range for each material type BACKGROUND This configuration setting enables to define the number range for material type. Each material type must have a number range so as to enable to create the material of that type.
INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → Basic settings → Material types → Define Number Range for Each Material Type
1.
Click
2.
Click
3.
Click F6 or from the top, follow the menu path. GroupInsert to insert the new group
4. Maintain the Text for the new group and maintain the interval for internal and external number range
5.
Click
6.
Click
.
to assign to the material type
7. click on the material type from the Not assigned list 8.
Click
9. Tick the group check box to which number range is to be assigned to this material type 10. Click 11. Click
.
Define industry sector BACKGROUND This configuration setting enables to define the industry sector and field selection specific to the industry sector. Industry sector definition is the one through which any screen sequence can be changed. Industry sector is the mandatory entry when creating the material master.
INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → Field Selection → Define industry sector and Industry-sector-specific field selection 1.
Click
2. Select the Mechanical engineering by clicking the grey box in the left 3.
Click
4. Maintain industry sector. E.g. Z 5. Maintain industry engineering-sp
description.
6. Maintain field reference. E.g. IND6 7.
Click
8.
Click
E.g.
Mechanical
Maintain user specific settings BACKGROUND This configuration setting enables to maintain the setting for material master creation specific to the user. By this way, users can be restricted from accessing certain data.
INSTRUCTIONS Follow the Menu Path: IMG → Logistics – General → Material master → configure the material master → Maintain User settings 1.
Click
2.
Click
Maintain the entries as shown below.
3.
Click
4.
Click
Maintain the entries as shown below
5.
Click
Effect of this configuration When user sapuser6 try to create material master, industry sector will not appear to him.
Set material block for goods movement BACKGROUND This configuration setting enables to define the block for material. This is essential to prevent usage of same material by different user at a given instance.
INSTRUCTIONS Follow the Menu Path: IMG → Materials Management General settings for Materials Management 1.
→
Click
2. Select the appropriate material block Lock exclusively – when the material master is read during the goods movement, plant data and accounting data are locked till the material is posted. Another user can not use this material at this time. Late lock – data will be blocked only at the time of saving.
3.
Click
Define storage location MRP per plant BACKGROUND This configuration setting enables to define the usage of storage location stock during MRP run.
INSTRUCTIONS Follow the Menu Path: IMG → Materials Management → Consumption Based Planning → Planning → Define Storage Location MRP per plant 1.
Click
2. Enter Plant. E.g. IND6 3.
Click
